RTTNews - Thursday, the Czech National Bank unexpectedly kept its interest rates unchanged.

The Bank Board decided to leave its two-week repo rate at 1.50%. Meanwhile, economists had forecast a quarter point reduction in the rate to 1.25%. The central bank also kept its discount rate at 0.50% and the Lombard rate at 2.50%.

In May, the bank had lowered its benchmark interest rate by 25 basis points from 1.75%.

Inflation in the country dropped to 1.3% in May from 1.8% in April. The economy contracted 3.4% in the first quarter from the previous three months.

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